Russel Metals (RUS) AI Stock Analysis

• Market Cap: $2.48B
• Dividend Yield: 3.81%
• Average Volume (3M): 100.92K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.99
• Revenue Growth: -0.13%
• EPS Growth: -33.06%
• Country: CA
• Employees: 3,970
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Distribution
• EPS (TTM): 0.75
• Shares Outstanding: 55,988,354
• 10 Day Avg. Volume: 91,067
• 30 Day Avg. Volume: 100,917
• PEG Ratio: -6.38
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.52
• Price Target Upside: 16.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: C$51.00 ▲(14.92%Upside)

Russel Metals achieves a strong overall stock score of 81, driven primarily by robust technical indicators and positive corporate events, indicating strong market confidence and strategic growth. The company's stable financial performance and fair valuation further support this outlook, making it an attractive option in the industrial distribution sector.

Positive Factors

Company Execution

RUS is executing well and continues to demonstrate its ability to capitalize on opportunities as they arise.

Financial Capacity

RUS has significant financial capacity to pursue opportunities across its capital allocation priorities.

Negative Factors

Earnings Estimate

Revised assumptions for the Service Center division, including marking-to-market steel prices and reduced gross margins, have led to a lowered 2025 EPS estimate.

Macro Uncertainty

Elevated near-term macro uncertainties keep the analyst on the sidelines.

Russel Metals Business Overview & Revenue Model

Company Description

Russel Metals Inc. is one of the largest metals distribution and processing companies in North America. It operates through three main segments: Metals Service Centers, Energy Products, and Steel Distributors. The company distributes steel and non-ferrous products and offers value-added services, including processing and cutting to length. Russel Metals serves a diverse range of industries, including construction, industrial machinery, transportation, and energy.

How the Company Makes Money

Russel Metals generates revenue primarily through the sale of metals and metal-related products. The Metals Service Centers segment is a significant revenue driver, offering a wide range of steel and non-ferrous products and providing value-added services, such as cutting, slitting, and custom processing. The Energy Products segment supplies pipes, valves, and fittings to the energy sector, catering to oil and gas companies. The Steel Distributors segment sources and sells steel products in bulk, often acting as an intermediary between mills and end-users. Russel Metals benefits from its strategic partnerships with major steel mills and its extensive distribution network, which enhances its ability to serve diverse markets effectively. The company's earnings are influenced by factors such as steel prices, demand from key industries, and economic conditions in North America.

Russel Metals Financial Statement Overview

Summary

Russel Metals presents a stable financial position with moderate profitability and efficient cash generation. While the company shows slight revenue growth and a decrease in free cash flow, its strong balance sheet and profitability metrics indicate a solid financial foundation. The leverage is well-managed, and the company is capable of converting income into cash effectively, positioning it well for future growth opportunities.

Income Statement

The company's gross profit margin for TTM is approximately 15.81%, and the net profit margin is around 3.53%. Both margins are indicative of moderate profitability. The revenue growth rate over the past year is 2.64%, showing a slight increase, but still lower than the growth seen in previous years. EBIT and EBITDA margins are at 4.96% and 7.07%, respectively, reflecting stable operating efficiency. Overall, the income statement exhibits decent profitability with room for improvement in revenue growth.

Balance Sheet

Russel Metals maintains a healthy balance sheet with a debt-to-equity ratio of 0.29, indicating a conservative leverage position. The return on equity (ROE) for TTM stands at approximately 9.35%, reflecting satisfactory profitability from equity. The equity ratio is about 60.89%, highlighting a solid equity base. The balance sheet reflects strong financial health with manageable debt levels.

Cash Flow

The TTM free cash flow growth rate is negative at -9.41%, indicating a decrease in free cash flow compared to the previous year. However, the operating cash flow to net income ratio is quite robust at 2.11, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 1.49, showing good cash flow conversion. Overall, the cash flow statement demonstrates solid cash generation capabilities, albeit with recent declines in free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.26B	4.51B	5.07B	4.21B	2.69B
Gross Profit	889.90M	956.50M	1.13B	1.21B	518.70M
EBITDA	315.50M	428.20M	580.40M	657.90M	125.20M
Net Income	161.00M	266.70M	371.90M	432.20M	24.50M
Balance Sheet
Total Assets	2.35B	2.57B	2.51B	2.31B	1.60B
Cash, Cash Equivalents and Short-Term Investments	45.60M	629.20M	363.00M	133.10M	26.30M
Total Debt	196.80M	422.50M	422.90M	404.30M	399.40M
Total Liabilities	688.30M	930.20M	947.60M	1.07B	731.60M
Stockholders Equity	1.66B	1.64B	1.56B	1.25B	864.70M
Cash Flow
Free Cash Flow	253.70M	389.00M	318.40M	275.70M	346.10M
Operating Cash Flow	343.90M	461.70M	359.90M	304.50M	371.00M
Investing Cash Flow	-417.70M	-5.30M	-6.50M	-107.20M	-27.30M
Financing Cash Flow	-537.90M	-184.90M	-139.10M	-93.50M	-327.10M

Russel Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RUS, the sentiment is Positive. The current price of 44.38 is below the 20-day moving average (MA) of 44.63, above the 50-day MA of 43.42, and above the 200-day MA of 41.15, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 52.67 is Neutral, neither overbought nor oversold. The STOCH value of 22.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RUS.

Russel Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUS	81 Outperform	$2.48B	16.73	9.30%	3.81%	-0.13%	-33.06%
FTT	79 Outperform	C$8.02B	16.95	18.79%	1.87%	6.61%	1.87%
TIH	74 Outperform	C$11.40B	23.58	16.70%	1.42%	6.99%	-5.58%
WJX	73 Outperform	C$510.62M	12.46	8.09%	5.93%	-2.65%	-47.65%
MTL	72 Outperform	C$1.15B	11.48	9.99%	6.43%	5.52%	-18.01%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
ARE	48 Neutral	C$1.18B	―	2.78%	4.05%	1.70%	-154.73%

Russel Metals Corporate Events

Russel Metals Announces 2025 Shareholder Meeting Results

Russel Metals Inc. announced the results of its 2025 annual meeting of shareholders, where 60.91% of common shares were represented. All nominee directors were elected with strong support, and the advisory ‘say on pay’ resolution was approved by 79.38% of votes. KPMG LLP was appointed as the company’s auditors. This outcome reflects shareholder confidence in the company’s leadership and strategic direction.

Russel Metals Reports Strong Q1 2025 Results and Strategic Expansion

Russel Metals Inc. reported strong financial results for the first quarter of 2025, with revenues reaching $1.2 billion and EBITDA at $86 million, driven by record quarterly shipments and favorable market conditions. The company achieved significant milestones, including a 2.4% increase in quarterly dividends, a $300 million issuance of senior unsecured notes, and a strategic expansion of its U.S. platform, enhancing its capital structure and market positioning.